Welcome to the ninth issue of The Star Valley Report. Published semi-annually, this data-driven report is the most accurate & trusted real estate news source that keeps all of Star Valley well informed on our ever-changing market.

The Overall Market in Star Valley has fallen on rough times.  With a recession in effect and an unstable economy, the rapid rates of appreciation and the number of real estate sales in the valley are finally feeling the effects from America’s distressed housing market.  Every category of the market (homes, lots, farm & ranch) has seen a downward turn, including number of sales, average price, and median price.  The statistics listed below are staggering as the market change has occurred so rapidly and drastically from previous years.  The cause for the downturn in our market can be any number of reasons and everyone has an opinion, but the one factor that cannot be argued is the numbers, which speaks volumes. 

HOW STRONG IS THE STAR VALLEY MARKET? The number of total sales valley wide has fallen to levels that we haven’t seen since 2003-2004.  With sales down 58% valley wide, it begins to make us wonder “when are we going to hit bottom?”   While we have still seen active listed prices continuing to hold, this summer will be pivotal to sellers as to whether they decide to reduce their prices and move the property, or hold fast and ride these tough times out.  At some point, we should see investors feel that the market has bottomed out and begin to buy “distressed” properties throughout the valley.

The key realization that most sellers will have to have is that their property is not worth as much as it was 2-3 years ago.  Demand is down and inventory is high, so the decision to sell will rely on how motivated the seller is and whether a price adjustment is feasible.  Up to date, we have yet to see any drastic price reductions, which will more than likely become more prevalent if the numbers of sales do not increase before the summer of 2009.

OVERALL MARKET IN STAR VALLEY:  When comparing the end of 2007 to the end of 2008, there were 500 fewer transactions in 2008 (down 140%).  The average price fell 18% from $278,981 to $236,806 and the median price was only down 2% to $210,000.  The decrease in average price can be attributed to more sales that fall into the lower end of the scale, meaning more affordable properties throughout the valley are the one’s that are selling.

The housing segment of our market, which has been the strongest part of the market the past couple of years, has seen an 82% decrease in the number of sales valley wide.

CURRENT OVERALL AVAILABLE INVENTORY: The number of overall active listings (974) on the market, as of January 1st, increased 5%.  We did see a decrease in the average list price (down 13% to $389,055) and an increase in the median list price (up 7% to $237,500).  The dollar volume of available properties, as of January 1st, was just under $379 million which is a 7% decrease when compared to January of 2007.

There continues to be a need for affordable homes (under $250,000) in the northern part of the valley, specifically for the Jackson Hole commuter.

REAL ESTATE CURRENTLY UNDER CONTRACT: There were 17 properties under contract (down 94%), as of January 1st, 2009, with an average listing price of $368,012 (down 7%), a median listing price of $226,000 (down 6%), and a total dollar volume of $6,256,200 (down 107%).  Looking at these stats and comparing them to what the current inventory on the market, tells us that we have 57 months (4.75 years) of inventory currently for sale.

AREAS OF STAR VALLEY:
Southern Star Valley (Smoot to Bedford)– 3,282 deeds.
Northern Star Valley (Bedford to Alpine) – 5,629 deeds.
Star Valley Ranch –2,082 deeds.


* Overall means everything either sold or on the market in all of Star Valley, which includes homes, lots, condos, commercial, farm/ranch and multi-family.

* All statistics are supplied by sources that have been deemed reliable but are not guaranteed.

* All statistics quoted in this newsletter are based on sales in 2007 compared to 2008.

* The value of any individual property may, and probably will, vary from the average indicated in these graphs.

* Median sale price is the cost of a property that has an equal number of similar properties above and below it on the price scale.

* Average sale price is the total combined dollar volume divided by the number of sales.

* This report is published and updated twice a year. Because of our fast moving market most of the statistics in this report are obsolete within two weeks. Therefore, you should not rely on this report to determine the value of a property, instead call me for a free market analysis.

© Copyright 2004 - 2009 by Jackson Hole Real Estate Associates, LLC. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without explicit written permission from Jackson Hole Real Estate Associates, LLC.